Sustainability of customer compensation activities due to high energy prices, predictability in the work of economic entities affected by energy price volatility, fair treatment of all economic entities and improving the investment climate - these are the main goals of the amendments to the Energy Act, proposed by the Ministry of Energy.
Producers of electricity from renewable sources will be able to receive an additional premium in the event that their achieved market price of electricity, plus the corresponding premium, is lower than their preferential purchase price, according to the proposals. Otherwise, when the market price, plus the premium, is higher than the preferential price set for these producers, they will owe additional contributions to the Electricity System Security Fund (ESSF).
According to another part of the proposed changes, the Council of Ministers, at the suggestion of the Ministry of Energy, will adopt a reference price for state-owned electricity companies. The levels reached on the market above this price, multiplied by the electricity produced by the respective company, will be collected as income in the ESSF.
Another part of the proposed amendments to the Energy Act envisages that the accumulated profits in public enterprises in the energy sector will be used to support consumers of electricity or natural gas. Thus, these funds will be spent on purpose - to compensate for those affected by high energy prices.
Given the ongoing military conflict in Ukraine and the uncertainty about energy prices in the coming months, new compensation programs are likely to be needed. The changes proposed by the Ministry of Energy provide additional financial resources for the ESSF, which will be spent specifically for the implementation of these programs.
The operators of the electricity transmission and distribution networks should be obliged to annually conduct a procedure through which electricity producers can order and reserve future capacities necessary for the connection of their sites, according to another of the proposed changes. The amendment will ensure predictability in the work of both network operators and their customers. This creates investment security and is important for improving the investment climate in the country, according to the Ministry of Energy
Source: Ministry of Energy